Cornerbank and Home National Bank ? both of which have locations in Winfield ? have come under closer scrutiny from the federal government as a result of recently filed enforcement orders.
Both banks have entered formal agreements with the Office of the Comptroller of the Currency that call for compliance committees to monitor bank finances. Home National’s agreement was filed June 18, Cornerbank’s agreement was filed July 1.
The comptroller of the currency office in Wichita is overseeing the case involving Winfield-based Cornerbank. Home National’s case is being handled by a deputy comptroller from the Arizona/New Mexico field office.
Home National is based in Blackwell, Okla.
Formal agreements for both banks require the formation of the compliance committees within 30 days of the filing. Cornerbank’s committee is to consist of three members, Home National’s will consist of five members.
Each institution is allowed to have one bank official on the committee.
The committees will monitor bank finances and make an initial report within 30 days of formation. Further reports will be filed once each quarter. Committees will, among other things, evaluate the banks’ loan portfolios, especially loans for commercial real estate and loans taken by larger borrowers.
Each formal agreement sets a minimum level for capital that each bank must maintain. The bank is also prohibited from lending additional money to certain borrowers identified by a prior evaluation, unless certain conditions are met.
The Office of the Comptroller was established in the 1800s to ensure the solvency of national banks.
All banks are evaluated by the comptroller’s office prior to an agreement being established.
